Are annuities-for you?

Almost half of workers plan to block a retirement annuity. Part of the reason is that the pension benefits offered by employers are most often distributed to workers in the form of an annuity, according to a new report "Ambivalence Towards Annuities older Americans," published by the Institute public policy for AARP. The study examines the results of an AARP survey of older workers and retirees about their choices for retirement income distribution.

The survey interviewed 1,750 workers aged 50 to 75 years and 670 retirees aged 59 to 75. The survey revealed that nearly five to 10 workers (48%) plan to take a pension or purchased from a life insurer or through their pension plan provided by the employer, and nearly four in 10 (38%) expect to receive a life income annuity.

The survey also showed that nearly three in four workers (74%) receive or expect to receive income from an annuity, and six in 10 (63%) receive income from a life income annuity. Three to four 10 workers and 10 retired with a choice of income distribution options plan to choose or have already chosen an annuity.

workers with 401 (k) type plan that are able to choose, a 31% plan to elect an annuity and 24% of retirees had made a similar choice.

When respondents were asked what features of annuities are "very" or "somewhat" convincing reasons to purchase an annuity, 82% say pensions "help you manage your budget because you get a predictable amount of money every month. " Annuities provide your salary and your PlayCheck so you can never outlive your income.

Respondents also cited the fact that annuities:

• offers peace of mind because the payments will continue for as long as you live (82% of respondents)
• Make sure that your monthly income will not fall, although it is an important market decline (80%)
• can help you stay independent because the money will never run (76, 8%)
• certainty of the offer regarding the rate of return (75.5%)

we are all living longer with a lot of us look to be active in our 0s one of the best ways to preserve our independence is to provide a source of income, we can not survive, and that's what Annuities do not ensure the safety, security and safeguards.